Trailing Stop Loss XAUUSD Order Levels Gold Technical Analysis and Trailing Stop Loss XAUUSD Order Levels Gold Signals
Created by Tushar Chande.
This is a volatility based indicator that's used to estimate levels to set stop loss levels. Distance at which it estimates the trailing stop level is determined based on market volatility.
The Levels of the 2 lines, these two lines represent:
- Long Stop Level - Blue Line
- Short Stop Level - Red Line
The long stop level line has much wider range in terms of where it trails stop loss as compared to short stop level which implements a tight stop loss.
This xauusd indicator is volatility based when it comes to trailing and following the gold trading price action. Trailing Stop Levels will trail the above the gold price in downwards market xauusd trend and trails below the gold price in an upwards market trend.
XAUUSD Technical Analysis & How to Generate Trading Signals
These will be calculated using volatility to calculate where to draw the indicator - this is used to determine what levels to set stop losses.
Upward XAUUSD Trading Trend
In an upwards xauusd trend these levels will follow below the gold trading price. The trader can use either the short stop level line to set up a tight stop or the long stop level to set a stop loss that is not very tight. As the gold trading price goes higher the trailing level also goes higher. An exit signal is generated when price crosses below these levels.
XAUUSD Trading Uptrend
Downward Gold Trading Trend
In a downward xauusd trend the stop loss levels will trail above the gold trading price this two levels can be used to set these levels. As the gold trading price drops further these levels will continue to drop lower and follow the gold trading price lower. An exit signal is generated when price crosses above these levels.
XAUUSD Trading Downtrend
When gold price starts to retrace these levels will not retrace but will remain at their levels, this will mean at some point the trade will be closed by the trailing stop loss.
